The Debt Management Office (DMO) of Nigeria has opened subscriptions for two Federal Government of Nigeria (FGN) savings bonds, each priced at ₦1,000 per unit. The goal is to offer safe investment options to individual investors with secure investment opportunities backed by the government’s full faith and credit.
The first bond is a two-year savings bond maturing on May 14, 2027, offering an annual interest rate of 16.173%.
The second bond is a three-year bond maturing on May 14, 2028, with an annual interest rate of 17.173%.
Interest payments for both bonds are scheduled quarterly on August 14, November 14, February 14, and May 14. The subscription window opened on May 5, 2025, and will close on May 9, 2025, with the settlement date set for May 14, 2025.
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Investors can subscribe with a minimum of ₦5,000, and additional investments must be in multiples of ₦1,000, up to a maximum of ₦50 million.
The bonds are designed to cater to retail investors seeking stable returns, offering guaranteed quarterly interest payments and full principal repayment at maturity.
The DMO emphasizes that these savings bonds are backed by the full faith and credit of the Federal Government and are charged upon the general assets of Nigeria. They qualify as government securities within the meaning of the Company Income Tax Act and Personal Income Tax Act, making them eligible for tax exemptions and suitable for pension funds and other investors. Additionally, the bonds are listed on the Nigerian Exchange Limited (NGX) and qualify as liquid assets for liquidity ratio calculations for banks .
This offering is in line with the Federal Government’s strategy to raise funds through the domestic bond market, having borrowed ₦1.94 trillion in the first quarter of 2025 via this avenue. With the attractive interest rates and investment security, Nigeria aims to encourage public participation in national development through investment in these savings bonds.
